Saturday, September 27, 2014

Make a Plan, Follow the Plan

 While going over the budget and doing some figuring, I've come to the realization that while I could quit my job and we could get by each month, things would be tight.

However, by my working we would be more comfortable financially, allowing us to add a substantial amount to savings and increase our debt-repayment. 

According to my plan, if I work two and a half more years we could save build our savings to nearly $15,000 (barring no serious emergency) and have all our debts paid off except for the house and three doctor bills from my surgery.

Included in the plan is selling Alfred's motorcycle for what we owe, which will enable us to drop the insurance on it. 

We will also sell his large rolling tool box cabinet. That money will go to tile the living room. Our current hardwood floor is warped from a water leak we had.

Combined total income: $5,721.68 (figuring low)

Monthly Expenses:
All bills: $2,822.81
Tricare ins. $204.29
Groceries: $800 ($200/wk for 7 people, includes pet foods and toiletries)
Work money: $160 (Alfred and I both get $20/week)
Cigarettes: $324 (yeah, I know...)
Gas: $160 (for my car only, Alfred has a work truck)
Savings: $478
Debt Booster: $478

Leftover Funds: $294.58 for family outings, home improvements, clothing, etc.

Of course, I will be doing all I can to reduce outgo. I am planning a family meeting this week to share/remind everyone ways they can help to reduce outgo as we are about to start a new month. Everyone needs to be on board.

Time to tighten our belts and get to it!


Terri Cheney said...

Tracy, Those figures are a great improvement aren't they? If you think I'll cast stones over cigarettes, nope. John quit smoking 20 years ago and everyone said Oh you'll have so much more money...Nope. It didn't happen. That's why when we paid off our home, we made sure to keep putting that same amount into savings.

Tracy Hathcock said...

Terri, indeed the figures are an improvement! I just need to keep my eye on the goal - paying off debt so I can return home for good and the ultimate freedom they both will bring. Not to mention what a gift it would be to Alfred to have our home paid off before he turns 50!! He has always worked so hard for our family.

Patricia @ Corn in my Coffee-Pot said...

it's so important to be the boss of the money, isn't it?
Telling your money how to behave for you to gain the biggest benefit from it.
I soooo...NEED to sit down and work up a new plan for our current circumstances. We lost part of our income when school started and we're not babysitting two of our grand children now. it's a big dent for us. were living outside our means. Not good.
I'm encouraged by your plan. Best wishes to you on it!

Missy said...

I understand the 'yeah I know" on smoking, but I did manage to even cut our cost on that... invested in a little $40 machine that makes cigarettes, we use pipe tobacco and buy pre-made filters (local tobacco shops usually have all this).. Our "make our own" taste better, actually burn longer since pipe tobacco is cut long instead of into the almost dust of cigarette tobacco. We learned all this when we lived in AK for a year and I refused to pay over $7 for a pack of ultra cheap cigarettes. The machine paid for itself the first month. I decided to total out our average cost and we are running right at $1.35 a pack... sure beats the $5+ at the stores these days!!!
Missy in Alabama